It appears some people are happy to constantly pull our State-Owned Companies down and to ignore their successes. In this instance the sensational utterances by the DA Member, Natasha Mazzone, is no exception. She conveniently ignored the fact that Eskom managed to record a marginal profit of R3.6 billion and instead focused on matters which I as Shareholder Representative have addressed with the Board.
She has been vocal on load shedding and since Eskom managed to find the balance between continued maintenance and keeping the lights on, Mazzone has changed her tactic. That is understandable as she certainly must look for straws to be relevant.
Let me address Mazzone's main concern about alleged bonuses paid to Executives. If she had read the Annual Report correctly, she would have seen that it was actually long-term incentives awarded in 2011/12 financial year, vested in the 2013/14 financial which was payable only in June 2014. Hence, these amounts reflect in the 2014/15 financials. In view of strict gatekeepers to the payment of bonuses, Eskom Executives did not qualify for short-term bonuses in the past two financial years.
In addition to basic conditions of employment, Eskom's salary structure is based on the size of the company in the market, using criteria such as revenue, assets, head count and employment costs. If one had to really compare Eskom to the market, one would see that Eskom is historically paid below the market median.
Despite her comments, let me state the following achievements, which Mazzone deliberately chose to ignore and fail to give credit. Eskom achieved the following during the 2014/15 financial statement:
For enquiries contact Colin Cruywagen on 082 3779916.
Issued by Ministry of Public Enterprises
07 September 2015